Rhipe Limited (ASX:RHP) has entered into binding legal agreements to acquire Parallo Limited for NZD 4.3 million on September 21, 2020. Under the terms of consideration, the initial purchase price for Parallo is NZD 4.25 million payable in cash upon completion. In addition to the upfront cash price, the vendors will be entitled to additional consideration tied to the reported EBITDA financial performance of the acquired business in the first 12 months and the following 12 months. In the 12 months prior to acquisition, Parallo delivered EBITDA of NZD 650,000 and is expected to deliver a growing EBITDA contribution to rhipe through continued strong organic growth, as well as leveraging both cost and revenue synergies arising from the combination with rhipe. The current Directors of Parallo are not continuing in their roles however Symon Thurlow will remain as a director after the acquisition. Parallo’s 25 employees will also join the rhipe family. The acquisition of Parallo reinforces rhipe’s commitment to provide partners with the latest infrastructure technology support to assist their growth, driving new opportunities to innovate and diversify their businesses. The transaction has been approved by the Board of rhipe Limited. The acquisition is expected to complete in the next four weeks and, excluding transaction costs, is expected to deliver earnings per share accretion in FY21. Rhipe Limited (ASX:RHP) completed the acquisition of Parallo Limited on September 21, 2020.